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Trafigura, Yara to develop and promote use of ammonia as clean bunker fuel in shipping

08 Jun 2021

Commodity trading firm Trafigura Pte Ltd and global ammonia player Yara International ASA have signed a memorandum of understanding to collaborate on the development and promotion of the use of ammonia as a clean fuel in shipping.

They will also work together to explore possible opportunities to work together on certain clean (green and blue) ammonia fuel infrastructure and market opportunities.

In a press release, Trafigura said reducing shipping emissions is a vital component of the fight against global climate change, yet greenhouse gas emissions from the global maritime sector are increasing.

Under the MoU announced on 7 June, Trafigura and Yara intend to collaborate in the following areas:

  • The supply of clean ammonia by Yara to Trafigura Group companies
  • Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
  • Development of new clean ammonia assets including marine fuel infrastructure and market opportunities

“There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential,” said Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.

Previously, Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels.

It has also performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by the International Maritime Organization.

Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually.

Yara also employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kilotons of storage capacity – enabling it to produce and deliver ammonia across the globe.

 

Photo credit: Trafigura
Published: 8 June, 2021

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